World Bank Implementation Review Mission and Site Visit Consolidated Update of the Progress of the Project

Western I ndonesia National Roads I mprovement Project 1 - 6 Evaluation by POKJA of Request For Expression of Interest of interested Consultants for shortlisting purposes has been completed. Evaluation result were forwarded to World Bank their review and comment

2. Technical Assistance for Capacity Building for Environmental Management

Propose to be deleted.

3. Technical Assistance for Capacity Building for Road Safety

Propose to be deleted.

1.6 Consolidated Update of the Progress of the Project

Other brief updates of the pre-construction activities of this reporting month are shown in Table 1.1. Western I ndonesia National Roads I mprovement Project 1 - 7 Consolidated Project Status As Of End April 2015 Table 1.1 DED Technical Design Review Road Safety Audit Status Doc Requirement Status Doc Requirement Status Budget Allocation Status Estd. Start Duration Months 1 Krui - Bha Completed Completed Completed SPPL AMDAL No.1 17 SPPL OK P2JN 2010 AMDAL Subdit TLKJ OK 2012 . WB NOL issues on 20 Nov 2013 1.LARAP 2. LARAP Mon Report 1.NOL WB 4 Jan 13 2.NOL LARAP Monitoring 18 April 2013, Rev 26 June 2013. Satker PJN Prov insi 98. Remaining issues: 1 four plots due to the alignment changing not y et paid by project. 2 Certification process of the PAP w ill be as soon as resolv ed by Satker Completed Jan-14 21.00 A Padang Saw ah - Sp. Ampat Including Air Gadang Bridge 3 Manggopoh - Padang Saw ah Completed Completed Completed SPPL OK P2JN 2010.No need NOL WB for SPPLUKLUPL 1.LARAP 2. LARAP Mon Report 1.NOL WB 13 Dec 12 2. NOL WB_1: 26 Apr 2013, NOL WB_2: 5 Mar 2014, NOL WB_3: 23 Jun 2014, NOL WB_4: 12 Feb 2015, NOL WB_5: 17 Mar 2015 APBD Prov insi 99. Pending issue: Compensation for the remaining 1 PAP being resolv ed by Local Gov ernment Completed Jan-14 24.00 A 4 Ipuh - Bantal Completed Completed Completed SPPL UKLUPL SPPL OK P2JN 2010 UKLUPL presentation on Balai III on 27 Aug 14. 1.LARAP 2. LARAP Mon Report 1.NOL WB 10 Dec 12 2. NOL MR-1: 6 Jan 2014, MR-2: 5 Mar 2014, MR-3: 12 Feb 2015 Satker PJN Prov insi 100 Completed Jan-14 24.00 A 5 Sp. Rampa - Poriaha Completed Completed Completed UKLUPL OK Balai 1 2011. No need NOL WB for SPPLUKLUPL 1.SLARAP 2. LARAP Mon Report 1.Nol WB 10 Dec 12 2. Mon Report: - Satker PJN Prov insi 99, Relocation 1 kiosk affected being done by project Contract Aw arded Dec-14 18.00 M 6 Ps. Pedati - Kerkap Completed Completed Completed UKLUPL OK TLKJ 2011. NOL WB issued on 20 Nov 2013 1.LARAP 2. LARAP Mon Report 1.NOL WB 20 Nov 2013 2. NOL WB_1: 23 Mar 2015. Satker PJN Prov insi Compensation pay ment for the remaining 56 PAP w ill be resolv ed on Apr - Jun 2015 Completed Mar-15 15.00 A 7 Indrapura - Tapan Completed Completed Completed AMDAL OK TLKJ , 20 Feb 2014. NOL WB issued on 8 Aug 2014 1.SLARAP 2. LARAP Mon Report 1.NOL WB 10 Oct 2014 2. Target of a Mon Report on April - Jun 2015 APBD Prov insi 2015 Inv entory affected asset under process On-Going Jan-15 21.00 G 8 Bts. Kota Pariaman - Manggopoh Completed Completed Completed AMDAL OK TLKJ 2013 . NOL WB issued on 14 April 2014 1.LARAP 2. LARAP Mon Report 1.NOL WB 12 Aug 2014 2. Target of a Mon Report on May 2015 APBD Prov insi 2015 Inv entory affected asset under process On-Going Feb-15 24.00 G 9 Rantau Tijang - Kota Agung be changed w ith Bengkunat - Biha UKLUPL OK TLKJ 2011. NOL WB issued on 20 Nov 2013 Social and Env safeguards screening Being prepared by Consultant Balai 3 Satker PJN Prov insi - Jun-15 21.00 L 10 Sp. Empat - Sp. Air Balam Completed Completed Completed AMDAL OK TLKJ 2013 . NOL WB issued on 14 April 2014 1.LARAP 2. LARAP Mon Report 1.NOL WB 12 Aug 2014 2. Target of a Mon Report on Apr - Jun 2015 APBD Prov insi 2015 Inv entory affected asset under process Not Yet Started Feb-14 24.00 G 11 Bantal - Mukomuko Completed Completed Completed AMDAL OK TLKJ 2014. NOL WB issued on 8 Aug 2014 1.LARAP 2. LARAP Mon Report 1.Nol WB: 20 Nov 2013 2. NOL WB-1: 2 Dec 2014, NOL WB-2: 12 Feb 2015 Satker PJN Prov insi 73. Compensation pay ment for the remaning 51 w ill be resolv ed on Apri - Jun 2015 Completed Feb-15 24.00 A 12 Kambang - Indrapura Completed Completed Completed AMDAL OK TLKJ 2014 .NOL WB issued on 8 Aug 2014 1.LARAP 2. LARAP Mon Report 1.NOL WB 10 Oct 2014 2. Target of a MR on Apr - Jun 2015 APBD Prov insi 2015 Inv entory affected asset under process on going Feb-15 24.00 G 13 Sp. Rukis - Tj.Kemuning Completed Completed Completed UKLUPL OK P2JN 2011. No need NOL WB for SPPLUKLUPL 1.LARAP 2. LARAP Mon Report 1.NOL WB:20 Nov 2013 2. Target a MR in Jun 2015 Satker PJN Prov insi Process of appraisal affected asset by Appraisal Independent Contract Aw arded Dec-14 24.00 M 14 Painan - Kambang On Going AMDAL OK TLKJ 2014 .NOL WB issued on 8 Aug 2014 1.LARAP 2. LARAP Mon Report 1.NOL WB 19 Des 2014 2. Target of a MR on Jun 2015 APBD Prov insi 2015 Socialization under process Not Yet Started Mar-15 21.00 B 15 Sibolga - Bts.Tap Sel Completed Completed Completed UKLUPL OK Balai 1 2011. No need NOL WB for SPPLUKLUPL 1.LARAP 2. LARAP Mon Report 1.NOL WB: 5Feb 2014 2.Target a MR Apr - Jun 2015 Satker PJN Prov insi 80 from total 1148 PAP already receiv ed compensation from Satker on going Feb-15 30.00 J Seblat - Ipuh including Air Lalang Air Guntung Bridge 18 Mukomuko - Bts.Sumbar be changed w ith Sibolga - Sorkam UKLUPL OK TLKJ 2011. No need NOL WB for SPPLUKLUPL Social and Env safeguards screening Being prepared by Consultant Balai 1 Satker PJN II Prov insi - May -15 18.00 L 19 Lais - Bintunan Completed Completed Completed UKLUPL OK TLKJ 2011.No need NOL WB for SPPLUKLUPL 1.LARAP 2. LARAP Mon Report 1.NOL WB 20 Nov 2013 2. NOL WB_1: 23 Mar 2015. Satker PJN Prov insi Compensation pay ment for the remaining 117 PAP w ill be resolv ed on Apr - Jun 2015 Completed Mar-15 10.00 A 20 Lubuk Alung - Sicincin On Going UKLUPL OK TLKJ 2011.No need NOL WB for SPPLUKLUPL 1.LARAP 2. LARAP Mon Report 1.NOL WB 19 Des 2014 2. Target of a MR on Jun 2015 APBD Prov insi 2015 Socialization process Not Yet Started Feb-15 18.00 B 21 Lubuk Alung - Kurajati On Going UKLUPL OK TLKJ 2011. No need NOL WB for SPPLUKLUPL 1.LARAP 2. LARAP Mon Report 1.NOL WB 19 Des 2014 2. Target of a MR on Jun 2015 APBD Prov insi 2015 Socialization process Not Yet Started Feb-15 18.00 B Remarks : A On going Construction = 3 Packages in 1 study AMDAL West Sumatera Prov ince B DED Draw ing are under final preparation C Technical Design Rev iew by CTC = 2 Packages in 1 study AMDAL Bengkulu Prov ince D Under Rev iew by Directorate of Technical Affairs E Final Detailed Engineering Design by DSC F Under Rev iew by BALAI G Ow ners Estimate approv ed H World Bank rev iew for issuance of NOL I Currently on Tendering stage J Bid Ev aluation Report Submitted to World Bank K Bid Ev aluation Report BER finalized by POKJA L Propose to be replaced M Contract aw arded NTP COW still to be issued Group Pack. No. Procurement Status AWP-1 1.LARAP 2. LARAP Mon Report 1.NOL WB 13 Dec 12 2. NOL WB 19 Juli 2013, NOL_2 WB 12 Feb 2015 APBD Prov insi 90. Pending issues: Compensation for the remaining 3 PAP and 24 new PAP being resolv ed by Local Gov ernment Completed Jan-14 AWP-2 Remarks Contract Implementation Plan Loan Package Name 2 Completed Completed Completed SPPLUKL UPL Bridge OK P2JN 2010 No need NOL WB for SPPLUKLUPL Environmental Social Land Acquisition 24.00 A M B AWP-3 On going appraisal process Contract Aw arded Oct-14 24.00 OK TLKJ 2011. NOL WB issued on 20 Nov 2013 1.LARAP 2. LARAP Mon Report 1.NOL WB: 16 Sep 2014 2. Target a MR in Jun 2015 16 On Going On Going 17 Sp.Gunung Kemala - Pg.Tampak Completed Completed 21.00 Mar-15 Not Yet Started Compensation pay ment for the remaining 311 w ill be resolv ed on Apr - Jun 2015 Satker PJN Prov insi Satker PJN II Prov insi OK TLKJ 2014 . NOL WB issued on 8 Aug 2014 On Going AMDAL Completed AMDAL No.1 17 1.NOL WB: 20 Nov 2014 2. NOL WB-1: 12 Feb 2015 1.LARAP 2. LARAP Mon Report Western I ndonesia National Roads I mprovement Project 2 - 1 2 PROJECT DESCRIPTION

2.1 Background

The Government of Indonesia wishes to continue strengthening of the National Road system in Indonesia while the Eastern Indonesia National Roads Improvement Project EINRIP which is assisted by AusAID through the Australian Indonesia Partnership or AIP, is providing support program of National road and bridge improvement works in Eastern Indonesia. The Western Indonesia National Road Improvement Project WINRIP will provide similar support for National road and bridge in the Sumatera region of Indonesia. The focus of WINRIP will be roads administered directly by the National Government, including those currently classified as Provincial, Kabupaten District or non-status roads which are in process of being reclassified as National roads. In addition, provision will be made for major bridge repair works, rehabilitation, duplication and replacement as necessary to complement road betterment works.

2.2 Project Development

The loan effectiveness date for the WINRIP is 12 March 2012 and key project data is shown in the following detail. Key Project Data WINRIP Loan No. 8043-ID Project Cost US350 million Original Loan Amount US250 million Revised Loan Amount NA Board Approval Date 26 May 2011 Loan Signing Date 14 December 2011 Effectiveness Date 12 March 2012 Disbursement as of 30 April 2015 US 18.42 million 7.37 Original Closing Date 31 December 2017 Environmental Category B-Partial Assessment The IBRD loan amount is US250 million. The Project is intended to finance a part of the DGH investment program for national roads with a particular focus on the Western corridor of Sumatera. The corridor is one of the three main corridors in Sumatera and connects the city of Padang with a population of around one million to major towns along the west coast Bukittinggi, Sibolga and Bengkulu. It also connects through connector roads on the West coast to Medan in the northeast and to Pekanbaru in the centre of the island. The project has four components: Project Component 1: Betterment and Capacity Expansion of National Roads According to the Loan Agreement, this component will cover three work programs of betterment and capacity expansion of approximately 715.6 km including replacement of 194 meters of bridges. This civil works program will be executed in three Annual Work ProgramsAWP, as summarized in Table 2.1. The table shows the IBRD assisted scope and costs of civil works at estimated current year of implementation prices, excluding taxes. Western I ndonesia National Roads I mprovement Project 2 - 2 Table 2.1 Proposed Physical Works by DGH Program Type of Works AWP-1 AWP-2 AWP-3 Km USD Million Km USD Million Km USD Million Road Betterment - - 53.10 22.77 - - Capacity Expansion 137.10 79.70 314.60 127.67 207.60 74.58 Bridge works 0.100 1.94 - - 0.08 2.06 TOTAL excluding tax current prices 137.20 81.64 367.70 150.45 207.68 76.65 The batches of projects are termed Annual Work Programs AWPs in line with terminology used in other Bina Marga projects. They are not in fact annual programs as such but rather a series of multi-year programs, each commencing in consecutive years. Hence, hereinafter it will call as just Work Programs WPs. It is expected that implementation of the first Works Program WP-1 will commence in the third quarter of 2013 and be completed by third quarter or late 2015. The second Work Program WP-2 is expected to commence in early 2014 and be completed by late 2015 or middle 2016. The third Work Program WP-3 is expected to commence in early 2015 and be completed by mid-2017. The loan will be closed on December 2017. Table 2.2 presents details of the First Works Program WP-1. The four packages in this group should have been free from any land acquisition issues, but in fact two packages Krui Biha and Manggopoh Padang Sawah had land issues which were solved by the DGH properly. Thus, there are no foreseeable impediments to implementation. Table2.2 IBRD Assisted WINRIP Civil Work WP-1 No Province Link No. Link Name C la ss R o a d T y p e Road Works Bridge Works Total Cost Fr o m T o Le n g th T re a tm e n t C o st 2 1 No Le n g th C o st 2 1 2 1 P ri ce s E q u iv a le n t Km Km Km Rp mill m Rp mill Rp mill US mill 1 Lampung 053.0 Krui Biha K1 IU 221.5 246.5 25.0 Bett nt to 7 m. 148,668 148,668 16.52 2 West Sumatera 047.2 PadangSa wa SimpangE mpat K1 IU 0.0 40.9 40.9 Bett nt to 7 m. 189,810 189,810 21.09 2a West Sumatera 34.1 AirGadan gBridge K1 IU New Bridge 1 100 17.580 17,580 1.95 3 West Sumatera 047.1 Manggop oh PadangSa wah K1 IU 102.2 134.2 32.0 Bett nt to 7 m. 152,435 152,435 16.94 4 Bengkulu 015.3 Ipuh - Bantal K1 IU 0.0 49.7 49.7 Bett nt to 7 m. 226,275 226,275 25.14 Western I ndonesia National Roads I mprovement Project 2 - 3 It should be noted that all road sub-projects have been subject to economic appraisal and have estimated Economic Internal Rates of Return EIRR in excess of 15. These were selected for inclusion and are subject to completion of environmental and social screening, to confirm that there is no land acquisition or resettlement requirements remain outstanding. Final Engineering Designs, Engineer s Estimates and bidding documents have been completed for all projects proposed for WP-1. Sub-projects to be included in WP-2 and WP-3 have also been determined as listed in Table 2.3. Final Engineering Designs and Engineer s Estimates for all WP-2 and WP-3 proposed works require preparation or finalization. In the cases of some projects, preliminary Engineering Designs were prepared during Project preparation which will require review and possible amendment by the Design and Supervision Consultant prior to procurement. The revised costs presented in Table 2.3 are planning estimates only, and the revised implementation plan is based on the Revised Timeline of implementation of the civil works. Table2.3: IBRD Loan WINRIP Civil Work WP-2 and WP-3 NO. SUBPROJECT LINK NO. AND NAME LENGTH KM ENGINEER S ESTIMATE RP. MILL WIDTH M REVISED IMPLEMENTATION PLAN START DURATION MONTHS WP-2 5. Sumut : Link No. 015.xx, Sp. Rampa Poriaha 9.70 152,870 6.0 Mar 2015 18 6. Bengkulu : Link No. 010.0, Ps. Pedati Kerkap 20.88 92,127 7.0 Apr 2015 15 7. Sumbar : Link No. 019.0, Indrapura Tapan 19.50 175,812 7.0 Jan 2016 21 8. Sumbar : Link No. 024.0, Bts. Pariaman Manggopoh 46.80 374,647 7.0 Jan 2016 24 9. Lampung : Link No. 026.1, Rantau Tijing - Kota Agung - - - - Proposed to be Deleted 10. Sumbar : Link No. 034.1, Sp. Empat - Sp. Air Balam 61.70 511,375 7.0 Jan 2016 24 11. Bengkulu : Link No. 015.2, Bantal Mukomuko 50.10 246,500 6.0 Mar 2015 24 12. Sumbar : Link No. 017.2, Kambang Indrapura 55.20 438,674 7.0 Jan 2016 24 13. Bengkulu : Link No. 006.1, Simpang Rukis - Tanjung Kemuning 56.30 316,305 7.0 Jun 2015 24 WP-3 14. Sumbar : Link No. 017.1, Painan Kambang 31.50 252,000 7.0 May 2016 21 15. Sumut : Link No. 016.0, Sibolga - Bts. TapSel 36.00 376,479 7.0 Oct 2015 27